[Asia Economy Reporter Lee Ji-eun] As the People Power Party and the Democratic Party of Korea engage in a battle of nerves over the Yoon Seok-yeol administration's 'corporate tax cuts,' Jeong Jin-seok, the emergency committee chairman of the People Power Party, emphasized the necessity of corporate tax cuts by stating that "Samsung Electronics and Hyundai Motor are not ultra-capital but ethnic capital concentrated by the national capability."
On the 14th, Chairman Jeong said through his social networking service (SNS), "The government plan to reduce the corporate tax rate from 25% to 22% is being opposed by the Democratic Party with the logic of 'ultra-rich tax cuts.'"
He said, "'Samsung Electronics defeated Sony'?if we were to express Korea's 20th century in one line, wouldn't this be it?" He emphasized, "Samsung Electronics and Hyundai Motor are not ultra-capital but 'ethnic capital' built by pouring all the capabilities of our nation."
He added, "The Democratic Party repeatedly resorts to sophistry to hide this fact. The fact that global companies like Samsung Electronics and Hyundai Motor were born in a Korea where such left-wing political forces run rampant is another miracle of Korea," and dismissed the claim that "Samsung Electronics and Hyundai Motor are 'ultra-rich' and therefore cannot be given special benefits" as nonsense.
Chairman Jeong also praised Samsung Electronics, stating that although the Democratic Party still holds the belief that 'Samsung and Hyundai are mere agents of American capital exploiting Korea and that no matter how big Samsung and Hyundai grow, they only serve American interests and do not contribute to the national economy,' it was Samsung Electronics that actually brought down Japan's electronics industry.
He also expressed concern that Samsung Electronics might fall behind in global competition due to being subject to higher tax rates than its competitors. He pointed out, "Corporate tax is a 'business tax' imposed on companies. Reducing the burden on companies allows them to compete in the global market and creates jobs for our children." He noted that while Samsung Electronics' competitor TSMC pays a 20% corporate tax rate, Samsung Electronics pays 27.5% in taxes including corporate and local taxes.
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